Day of Europe’s Stress Tests Saw Collapse of 7 More US Banks

Seven more US banks collapsed on the day of Europe’s stress tests, according to reports on Sunday.

Apparently, more than 100 banks in the US have already collapsed this year after another seven were taken over by regulators late Friday. It was the same day of Europe’s stress tests wherein seven European banks failed a financial health check.

The number of collapsing US banks is expected to increase, even exceed last year’s 140 figure, due to the swelling bad debits connected to commercial and residential mortgages.

Crescent Bank and Trust Company in Georgia is considered as the largest of the seven US banks seized by the Federal Deposit Insurance Corporation. The bank has more than $1 billion in assets. Over all, the seven banks that collapsed had total assets worth $2 billion.

According to The Guardian, in Europe, investors will “have a first real chance tomorrow to react to the results of banking stress tests designed to ease concerns about institutions’ financial strength and exposure to debt-laden countries such as Greece.”

Meanwhile, Britain’s four biggest banks, Barclays, HSBC and the bailed-out Royal Bank of Scotland and Lloyds Banking Group, comfortably passed the tests.